Equity release to pay off mortgage?

getmore4less

I am not sure another couple of years will help here and chances are there is not that much to be gained from trying to develop.

Night be time to price to get some buyers interested.

What was the valuation for IHT because there is potential here for a CGT bill on the state if you have been spending money and putting value into the house.

skylark52

getmore4less wrote: »

Have the kids done a DOV so you can have the house?

Where are the 3 kids in all of this financial mess.

Do I understand rightly that the children can get a DOV (what is the full legal term?) done individually at any solicitor? Or does my solicitor need to handle that? I know I could ask my solicitor but every question costs......:(

getmore4less

There may be details that change this, but from what you have said in your posts...

As the house is to be sold it won't need to change to your name.

As I understand it, intestate and the 3 kids are all his.

They inherit 1/3 each say around £30k each after you recover any debts/funeral costs etc. you paid

If they want you to have the house or the cash proceeds then all they have to do is gift that to you, sign over the house or give you the cash)

If any of them will have assets(with the inheritance) that will exceed the nil rate band(£325k) in the next 7 years then it may be beneficial for them to do a DOV to limit IHT on their estates if they die.

A DOV does not have to be done by a solicitor but if needed it may be worth the expense to the child that wants to do one.

skylark52

getmore4less wrote: »

There may be details that change this, but from what you have said in your posts...

As the house is to be sold it won't need to change to your name.

As I understand it, intestate and the 3 kids are all his.

They inherit 1/3 each say around £30k each after you recover any debts/funeral costs etc. you paid

If they want you to have the house or the cash proceeds then all they have to do is gift that to you, sign over the house or give you the cash)

If any of them will have assets(with the inheritance) that will exceed the nil rate band(£325k) in the next 7 years then it may be beneficial for them to do a DOV to limit IHT on their estates if they die.

A DOV does not have to be done by a solicitor but if needed it may be worth the expense to the child that wants to do one.

They would all prefer to sign over the property to me, so if not needed to be done by a solicitor, is it a matter of them just writing a letter? Does it need to be done in a certain way?


And yes, after all the advice here I have decided to drop the price considerably and see if I can sell it soon. It's regrettable but sensible.


The house was valued at £260 for inheritance tax purposes and I have increased the value by about £20.000 according to the estate agents so with the £180.000 mortgage to pay off we should be well below the inheritance tax limit.

getmore4less

Remember no one here has seen the place or know the local market it based on what you have said.

If selling as the named administrator you have total control.

The need for anything from the beneficiaries is to cover yourself from them changing their minds.

yksi

I hear you, skylark52, and didn't mean to suggest you weren't trying for six years. I do understand what depression can do to someone and how hard it can be to climb out of the abyss when your world has fallen upside down. This isn't a blame game. x

But regardless of the "whys", when a home gets viewings but no offers, it's the price. There is always a price at which someone, somewhere, will be willing to deal with difficult paperwork or renovations or neighbours. It's good that you're looking more realistically now at your options. I hope you can get the house signed over to you and that you find a buyer quickly; look at it as a small boost for your new life, to look after yourself in a way he never did for you. x

AnotherJoe

AIUI Theres a limit of 2 years on a DoV so that's ruled out plus it's unnecessary and might have been counterproductive as it would raise any CGT to be paid since there would be one allowance not three. A moot point anyway.
They can just Each gift their shares to you with no realistic tax consequence.

skylark52

yksi wrote: »

I hear you, skylark52, and didn't mean to suggest you weren't trying for six years. I do understand what depression can do to someone and how hard it can be to climb out of the abyss when your world has fallen upside down. This isn't a blame game. x

But regardless of the "whys", when a home gets viewings but no offers, it's the price. There is always a price at which someone, somewhere, will be willing to deal with difficult paperwork or renovations or neighbours. It's good that you're looking more realistically now at your options. I hope you can get the house signed over to you and that you find a buyer quickly; look at it as a small boost for your new life, to look after yourself in a way he never did for you. x

Thanks, I know it wasn't meant negatively. You did me a favour really. Until now I have been looking at trying to find ways to keep the house that means so much to me, knowing that life will irrevocably change with so many unknowns. After so many years of hardship I had hoped that finally things would smooth out a bit but it makes me see I have a bit further to go. Your reality check made me sit back and think, and make a decision. Let's hope Santander won't pull the plug with the treathened court case before I have chance to find a buyer.

skylark52

AnotherJoe wrote: »

AIUI Theres a limit of 2 years on a DoV so that's ruled out plus it's unnecessary and might have been counterproductive as it would raise any CGT to be paid since there would be one allowance not three. A moot point anyway.
They can just Each gift their shares to you with no realistic tax consequence.[/QUOT




So all they have to do is put that in a written statement? Sorry, not sure how that works. Kids are here for Christmas so I would like to let them know what to do and at what stage in the process of selling/going to court?

AnotherJoe

You can do the transfer of property deeds yourself there's a few forms need filling in. Its more than writing a note. Or a pay a solicitor a few hundred quid to do it.
Or, how about this, the kids sell the house and then just transfer (eg give) the money to you... thinking about it thats probably the easiest way since you'd incur solicitors costs selling the house anyway so why have two lots of costs.